# History of NERC
August 2013

Timeline



### Date Description

1962

– 1963 The electricity industry create s an informal, voluntary organization of operating personnel to facilitate coordination of the Bulk

- Power System in the United States and Canada. Four interconnected transmission systems

are connected to three more systems, forming the largest electricity g rid in the world. In January 1963, the North American Power Systems Interconnection Committee (NAPSIC) is formed.

November 9, 1965 The largest blackout to date in history occur s , 30 million los e power in the northeastern United States and southeastern Ontario, Canada. New York City and Toronto are among the affected cities. Some customers are without power for 13 hours.

1967 Legislation (U.S. Electric Power Reliability Act of 1967) propose s the creation of a council on power coordination. Although not enacted, the proposed legislation stimulate s the development of an industry electric reliability council.

1967

– 1968 Federal Power Commission (predecessor of the Federal Energy Regulatory Commission) recommend s the formation of a council on power coordination made up of representatives from each of the nation’s regional coordinating organizations, to exchange and disseminate information and to review, discuss and assist in resolving interre gional coordination matters.

June 1, 1968 National Electric Reliability Council (NERC) is established by the electricity industry in response to the 1965 blackout and the recommendation of the Federal Power Commission. Nine regional reliability organizations are formalized under NERC. Also formalized are regional planning coordination guides, which NERC maintain s . The utilities maintain and practice voluntary NAPSIC operating criteria and guides.

July 13

– 14, 1977 New York City blackout occur s . This le a d s to the first limited reliability provision in federal legislation. The legislation enable s the federal government to propose voluntary standards, an authority never exercised.

1979 Report to NERC by Joseph Swidler, former chair of the Federal Power Commission, with recommendations with respect to the substantive role of NERC in light of the Public Utility Regulatory Policy Act of 1978 (PURPA).History of NERC 2 1980 NAPSIC bec o me s part of NERC, forming the NERC Operating Committee and bringing the reliability roles of operations and planning together in one organization. NERC adopt s NAPSIC operations criteria and guides.

1981 NERC change s its name to the North American Electric Reliability Council in recognition of Canada’s participation and to more accurately reflect the broader scope of NERC’s membership.

1987 NERC form s a committee to address terrorism and sabotage of the electricity supply system at the urging of the National Security Council and Department of Energy.

1992 NERC Board of Trustees state s for the first time that conformance to NERC and regional reliability policies, criteria and guides should be mandatory to ensure reliability, in one of six Agreements in Principle adopted by the Board. (At that time, NERC had no authority to enforce compl iance with the policies, criteria and guides.)

1993 Building on the Agreements in Principle, NERC publishe s “NERC 2000,” a
four

- part action plan for the future that recommend s mandatory compliance with NERC policies, criteria and guides and a process for addressing violations. “NERC 2000” encompasse s policies for interconnected systems operation, planning reliable bulk electric systems, membership, and dispute resolution.

1995 Federal Energy Regulatory Commission (FERC) issues Notice of Proposed Rulemaking on Open Access proposing to encourage more fully competitive wholesale electricity markets. NERC file s six

- point action plan to address the planning and operating reliability aspects of the NOPR.

1996 Two major blackouts in the western United States prompt the Western Systems Coordinating Council (WSCC) to develop the Reliability Management System in which members enter voluntarily into agreements with WSCC to pay fines if they violated certain reliability standards. (WSCC, a regional reliability organization, is now the Western Electricity Coordinating Council.)

1997 Electric System Reliability Task Force established by the Department of Energy and an independent Electric Reliability Panel (“Blue Ribbon” Panel) formed by NERC both determin e grid reliability rules must be mandatory and enforceable in an increasingly competitive marketplace. Both groups recommend the creation of an independent, audited self

- regulatory electr ic reliability organization to develop and enforce R eliability S tandards throughout North America. Both groups conclude that federal legislation is necessary. NERC begins converting its planning policies, criteria and guides
into standards.History of NERC 3 1999 Nine independent directors added to the NERC Board

, joining the president and 37 industry stakeholder members in anticipation of NERC becoming an
audited self

- regulatory organization.

Broad coalition of industry, state and consumer organizations propose legisl ation in the United States that would create an electric reliability organization to develop and enforce mandatory reliability rules, with oversight in the United States by FERC.

2000 NERC appointed as the electric utility industry’s primary point of contact with the U.S. government for national security and critical infrastructure protection issues. NERC establishe s the Electricity Sector Information Sharing and Analysis Center.

Proposed reliability legislation first introduced in U.S. Congress by Se nator Slade Gorton of Washington.

2001 NERC governance changed. Board replaced with a 10

- member independent board. Stakeholders Committee created. (The Stakeholders Committee name was later changed to the Member Representative Committee.)

May 1, 2002 NERC operating policies and planning standards bec o me mandatory and
enforceable in Ontario.

August 14, 2003 North America experience s its worst blackout to date, as 50 million people
lo o s e power in the northeastern and midwestern United States and Ontario, Canada. U.S.

– Canada Power System Outage Task Force formed to investigate the causes of the blackout and to make recommendations to prevent future blackouts.

February 2004 NERC Board approves making the Critical Infrastructure Protection Advisory Committee a permanent standing committee of the Board.

April 5, 2004 Final report of the U.S.

– Canada Power System Outage Task Force on the
2003 blackout conclude s the single

- most important recommendation for preventing future blackouts, and reducing the scope of those that occur, is for the U.S. government to make Reliability Standards mandatory and
enforceable.

Summer 2004 Bilateral Electric Reliability Oversight Group (BEROG) established as a forum for identifying an d resolving reliability issues in an international,
government

- to

- government context. BEROG grew out of the U.S.

– Canada Power System Outage Task Force.History of NERC 4 November 12, 2004 NERC translate s its operating policies, planning standards and compliance requirements into an integrated and comprehensive set of 90 measurable standards called “Version 0 Reliability Standards.”

February 2005 NERC Board approves dissolution of the NERC Market Committee and endorses continued cooperation and coordination with North American Energy Standards Board (NAESB).

April 1, 2005 Version 0 Reliability Standards become effective. Voluntary compliance expected as a matter of good utility practice.

May 2005 NERC Board approves scope of the Compliance and Certification Committee to provide stakeholder oversight to the Compliance and Certification Programs.

August 8, 2005 Energy Policy Act of 2005 authorize s the creation of an audited self

regulatory “electric reliability organization” that would span North America, with FERC oversight in the United States. The legislation state s that compliance with Reliability Standards would be mandatory and enforceable.

April 4, 2006 NERC file s an application with FERC to become the electric reliability organization in the United States.

NERC file s 102 Reliability Standards with FERC

— the 90 Version 0 standards plus 12 additional standards developed in the interim.

NER C file s the same information with the Canadian provincial authorities in Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Quebec and Saskatchewan, and with the National Energy Board of Canada, for recognition as the electric reliab ility organization in Canada.

July 20, 2006 FERC certifie s NERC as the electric reliability organization for the United

States.

November 2006 NERC Board approves the charter of the Transmission Owners and Operators Forum.

September

– December 2006 NERC signs memorandums of understanding with Ontario, Quebec, Nova Scotia and the National Energy Board of Canada.

January 1, 2007 The North American Electric Reliability Council bec o me s the North American Electric Reliability Corporation

. The new entity has a large membership base representing a cross

- section of the industry.History of NERC 5 March 15, 2007 FERC approves 83 NERC Reliability Standards, the first set of legally
enforceable standards for the U.S. Bulk

- Power System, effective June

2007. FERC stated that voluntary compliance with NERC’s additional standards should continue as good utility practice

. April 19, 2007 FERC approves agreements by which NERC delegates its authority to monitor and enforce compliance with NERC Reliability Standards in the United States to eight Regional Entities, with NERC continuing in an oversight role.

June 18, 2007 Compliance with approved NERC Reliability Standards becomes mandatory
and enforceable in the United States.

August 2007 NERC Board endorses the DOE Energy Sector Specific Plan and agrees to undertake the activities as called upon in support of the Plan.

October 2007 NERC B oard approve s Transmission Availability Data System data collection.

July 2009 NERC files Three

- Year ERO Performance Assessment with FERC.

November 2009 NERC approve s resolution terminating the formal relationship with the North American Transmission Forum (formerly the Transmission Owners and Operators Forum)

.